We report for the first time on the limitations in the operational power range of network traffic in the presence of heterogeneous 28-Gbaud polarization-multiplexed quadrature amplitude modulation (PM-mQAM) channels in a nine-channel dynamic optical mesh network. In particular, we demonstrate that transponders which autonomously select a modulation order and launch power to optimize their own performance will have a severe impact on copropagating network traffic. Our results also suggest that altruistic transponder operation may offer even lower penalties than fixed launch power operation.We report for the first time on the limitations in the operational power range of network traffic in the presence of heterogeneous 28-Gbaud polarization-multiplexed quadrature amplitude modulation (PM-mQAM) channels in a nine-channel dynamic optical mesh network. In particular, we demonstrate that transponders which autonomously select a modulation order and launch power to optimize their own performance will have a severe impact on copropagating network traffic. Our results also suggest that altruistic transponder operation may offer even lower penalties than fixed launch power operation.